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Mid-Sized Companies Ready for Cloud Services, But Need Deployment Help

January 05, 2011 - News

More mid-sized businesses are ready to turn to cloud computing, according to new findings from tech consulting firm The Armada Group. They’re not ready to make the journey alone, though, which spells opportunity for channel partners developing their cloud portfolios and sales techniques.

About two-thirds of respondents to Armada’s Cloud Readiness Assessment said they already use virtualization and think cloud services, too, will shore up expenses. But, on their own, they don’t quite know how to achieve those savings.

"In medium-sized companies, we found that while 62 percent are using virtualization and 71 percent have a defined IT architecture, most of them – 79 percent – do not have a roadmap for cloud computing," said Jeff Tavangar, president of The Armada Group.

Meanwhile, two-thirds of respondents, or 67 percent, said they’re interested in cloud-based storage. However, only 4 percent of those companies are using the application.

“The main advantage they see to cloud computing is that they believe that it provides cost savings over traditional IT methodology," Tavangar said. “Based on this, Armada sees a large market for helping businesses to define the best way to migrate their existing applications to the cloud."

Other Armada Group findings about mid-size businesses’ cloud readiness include:

  • 83% are using in-house systems and applications management
  • 62% are using some virtualization.
  • 63% have 10 percent or less of their applications running on a SaaS platform.
  • 71% have a defined IT architecture.
  • 54% take a day or more to deploy a new server.
  • 71% do not have a virtual desktop deployed.
  • 67% are using or have plans to use cloud-based storage.
  • 75% manage their own servers.
  • 79% do not have an IT roadmap for cloud computing.
  • 63% believe cloud offers cost saving.
  • 8% believe cloud offers no advantages.
  • 29% believe cloud offers increase flexibility.
  • 33% use a remote storage server to back up data.
  • 4% use a cloud-based solution to back up data.
  • 60% back up their data locally.
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